Index-based liquidity system and method
AssigneeMarket Shield Capital, LLC
InventorsAllan N. Weiss, Neil R. Gordon
Life of this patent
Estimating the term…
Abstract
A system and method for creating liquidity relative to one or more small businesses or assets provides liquidity to the small business or asset holder in return for a payment stream that comprises at least one payment that is adjustable relative to at least one relevant index.
Claims39
A method of creating liquidity in at least one asset, the method comprising one or more computer implemented process and comprising:
- establishing a current market value for the at least one asset;
- defining an index having at least one component related to a market to which the at least one asset belongs;
- providing liquidity from a lender to a holder of the at least one asset;
- defining a payment stream, the payment stream having one or more payments from the holder to the lender;
- and
- adjusting the payment stream as a function of the index, including:
- if there is an increase in the index, adjusting the at least one payment in a first direction;
- and
- if there is a decrease in the index, adjusting the at least one payment in a second direction opposite the first direction.
A method for providing liquidity in a small business, the method comprising one or more computer implemented process and comprising:
- defining a fund representing a financial stake in a real estate small business;
- determining an initial payout by the fund to the real estate small business;
- defining at least one index related to real estate;
- defining a future payment stream to be made by the real estate small business to the fund corresponding to the initial payout;
- and
- adjusting at least one payment in the future payment stream in response to a change in the index.
A method of determining a payoff of a loan, the method comprising one or more computer implemented process and comprising:
- providing upfront liquidity to at least one small business;
- defining a payment stream to be made by the small business corresponding to the upfront liquidity for a term;
- defining at least one index related to a market value of the at least one small business;
- adjusting at least one payment in the payment stream in response to a change in the index;
- and
- in the case of payoff before the end of the term, determining a present value of future payments from the payment stream using the at least one index.
A method of providing liquidity with prepayment adjustments, the method comprising one or more computer implemented process and comprising:
- providing upfront liquidity to a small business of a liquidity amount;
- defining at least one index related to a market value of the small business;
- defining a payment stream to be made by the small business for a term, the payment stream calculated for a principal amount that is greater than the liquidity amount;
- at the end of the term, if the principal has not been prepaid and there is still an amount due, forgiving at least a portion of the amount due based on the index.
Dependencies are inferred from the claim text.